Zoomex: AI trading erodes visible liquidity, stresses execution

Zoomex warned that AI-driven and algorithmic trading have reduced the reliability of traditional liquidity measures. The exchange said trading volume and visible order-book depth can display liquidity that does not match the volume traders can actually execute.

According to the exchange, automated strategies often place and cancel orders rapidly, creating apparent depth while shrinking the volume available at quoted prices. Zoomex said the disconnect is most visible during fast market moves and periods of high volatility, when slippage and inconsistent fills increase for both manual and automated traders.

Zoomex cited internal and independent testing to support its view. In spot markets the exchange reported more than 62.7 million USDT in BTC spot depth and nearly 29.8 million USDT in ETH liquidity, while maintaining 0.03% slippage on a simulated 10 BTC market buy order. In futures testing the platform recorded a 17-second reaction time for BTC execution checks and said that result outperformed several larger exchanges included in the analysis. The company also described its matching engine as capable of keeping latency below 10 milliseconds.

In a statement, a Zoomex representative said, “What we are seeing is a structural shift. Visible liquidity can no longer be treated as reliable. In an AI-driven market, what matters is whether liquidity can be executed consistently in real time.” The representative added that execution quality is becoming a baseline expectation for exchanges that serve retail and algorithmic participants.

The exchange noted that the growing presence of AI in trading raises infrastructure requirements. Automated strategies depend on low latency, stable data feeds and precise execution; even minor delays or intermittent inconsistencies can affect timing-sensitive strategies, the company said.

Founded in 2021, Zoomex serves more than 3 million users across over 35 countries and regions. The platform offers more than 700 trading pairs and over 590 perpetual contracts. Zoomex listed regulatory registrations including Canada MSB, U.S. MSB, U.S. NFA and Australia AUSTRAC, and reported completing security audits by blockchain security firm Hacken. The exchange also cited asset protection measures that include multi-signature hot and cold wallet structures.

Market observers and analysts have started to emphasize execution-based metrics such as slippage rates, fill consistency and liquidity behavior under stress. The exchange framed its testing and infrastructure claims as responses to those market priorities rather than promotional statements.